The Union Budget 2026 brought several changes to India’s direct tax framework through the Income Tax Act, 2025, which came into effect from April 1, 2026. Key measures included reducing TCS to 2% on overseas tour packages and remittances under the LRS, providing an exemption on interest received from motor accident compensation claims, and extending the deadline for filing revised income-tax returns up to March 31. The Budget also introduced a six-month window for small taxpayers to disclose certain foreign assets under the new tax provisions.